Good read Charles! I guess anything could happen. Wishfull thinking, but also logical thinking as you pointed out. My big takaway. The bottom is in! After last two calls, The action was silent and then slowly positive. We should slowly creep back up until the January call.
CM is a perma-bull who just a few months ago said SKUL stock was going to $40 based on a mis-reading of the credit agreement covenants. Now he is openly bullish because of an extremely unlikely buyout scenario by the CEO's former employer, which he refers to as "shocking." Whenever I came across his emotionally charged commentaries ("I love the logo"), it makes me question what side I'm on. Look elsewhere for rational insight.
Ben, don't be surprised if SKUL introduces a Bluetooth headset early next year. Air Raid obviously has been developed with that technology and they can expand into headphones / earbuds etc. They are unstuff in the channel right now and every introduction is being timed to not hamper that. The introduction of product after product rapid fire is part of the reason the channel is stuffed and margins are suffering.
Hoby's approach is proven and although may seem painful now, is the tight thing to do. A year ago everyone was screaming "get into Walmart" that would have been a further disaster in the off priced channel. Patience my friend!
I agree on the buy-out theory but not on the acquirer. Nike has done a very good job lately of shedding non core businesses and i don't see them wanting to get into a very crowded, saturated, low margin headphone business. Hoby wanted to be THE MAN and do his own thing, nothing more complicated than that. Suggesting he was placed there by NIKE is just plain dumb IMHO and a big REACH!